Peter Goodman’s article Printing in China: Is It Wise? Is It Safe? (Independent, August 2013] is brilliant.
Although I deal with media liability insurance, I can report that insurance is available for publishers who do business in foreign countries and who might suffer lost profits and unbudgeted expenses as a result of an overseas printer going up in smoke or ceasing to function because of other perils.
While publishers can get “transit insurance” coverage for books moving from China to New York, that insurance generally does not cover the staggering loss of profits and extra expenses incurred when a printer goes out of business or shuts down temporarily because of a fire or for some other reason.
If you use an overseas printer, you may want to ask your insurance agent about the relatively new kind of insurance policy that covers “Business Income and Extra Expense from Dependent International Properties” for a “Contributing Location” on a Special Form basis.
The agent will need to know:
- how long you would or might be out of business if your major foreign supplier closed down
- the approximate loss of profit that would result
- the approximate dollar amount of expenses that would continue (salaries, lease costs, rent, insurance, and so on)
- the amount of money you would need to cover extra expenses you might incur as a result of the loss of a foreign supplier
Fortunately, this type of insurance is not expensive. See IBPA’s member benefit for more information.
Mike Mansel is vice president, commercial lines, at Granite Insurance Brokers. To learn more: email@example.com; 925/462-8400.